Frugal Toad Best Reads of the Week – Frugality Tips Edition

This week I found some great articles on frugal living and frugality. One theme that seems to be a common one is the many ways to make simple changes in daily spending habits that can result in substantial savings.

Frugal Tip of the Week

Take small savings and leverage them to build wealth. For example: Try cutting discretionary spending like eating out or staying in a budget hotel for a vacation instead of a more expensive option. Once you are able to make permanent monthly savings, increase your 401k contribution and invest these savings in a low-cost diversified mutual fund. By increasing your 401k contribution you are lowering your taxable income and building wealth at the same time. For those lucky enough to have an employer that matches your retirement account contributions, you can have the added benefit of a “free money” match.

I agree that small changes are the way to save money. People think you need to be able to save at least like $100 every month, or week to make a difference, and it’s really just starting little by little and increasing from there…